Urgent Crypto Regulation: Why Congress is Key for Lasting Change

In the ever-evolving world of cryptocurrency, one thing remains constant: the need for clear and effective regulation. But how can this be achieved in a way that provides stability and longevity for the crypto market? Former Congressman Wiley Nickel offers a compelling answer: crypto regulation must go through Congress to ensure lasting change.

Why Executive Orders Fall Short in Crypto Regulation

Executive orders, while seemingly swift, are not the answer to robust crypto regulation. Nickel points out a critical flaw: they can be easily undone by subsequent presidential administrations. Think of President Trump’s executive orders on digital assets and CBDCs – while impactful at the time, they are vulnerable to reversal with a change in leadership. This creates a regulatory seesaw, injecting uncertainty into the crypto space.

Nickel stated in a recent interview, “I think it’s really important for anybody who cares about this issue to step back and realize that if you want lasting change in Washington, you must move legislation through Congress. Otherwise, if you’re talking about executive orders, it will just go back and forth.”

This back-and-forth is exactly what the crypto industry wants to avoid. The recent issues with the SEC under Gary Gensler highlight the problems of regulatory uncertainty. What’s needed is a solid, legislative foundation, not temporary fixes.

Congress: The Path to Permanent Crypto Policy

So, why is Congress the crucial arena for establishing effective crypto regulation? Legislative action through Congress carries significantly more weight and permanence than executive actions. Here’s why:

• Enduring Impact: Laws passed by Congress are harder to overturn. They require a similar legislative process for amendments or repeal, providing a more stable regulatory environment for crypto businesses and investors.
• Bipartisan Support is Essential: For legislation to pass and be truly effective, it needs bipartisan backing. Nickel emphasizes the importance of collaboration across party lines to achieve comprehensive and durable crypto regulation.
• Avoid Regulatory Whims: Relying solely on executive orders exposes the crypto sector to the changing priorities of each presidential administration. Congressional action provides a buffer against these political swings.

Legislative Efforts in Congress: A Glimmer of Hope?

Despite the challenges, there’s movement within Congress towards establishing clear crypto regulation. Several key initiatives demonstrate this momentum:

• CBDC Ban Legislation: Rep. Tom Emmer reintroduced legislation aiming to ban a central bank digital currency in the US. This signals a clear stance on certain aspects of digital assets from within the House.
• The Bitcoin Act of 2025: Senator Cynthia Lummis’s reintroduced Bitcoin Act seeks to expand upon previous versions, potentially allowing the US to hold more than 1 million Bitcoin. This shows a growing acceptance and strategic consideration of Bitcoin within legislative circles.
• Strategic Bitcoin Reserve Codification: Rep. Byron Donalds is working on legislation to codify a Bitcoin strategic reserve into law, aiming to protect President Trump’s initial executive order from future reversals.
• Repeal of IRS Broker Rule: The House of Representatives’ repeal of the IRS broker rule for DeFi platforms indicates a willingness to address and refine existing regulations that might hinder innovation.

These actions, coupled with Rep. Ro Khanna’s optimistic outlook for comprehensive crypto regulation in 2025 (including stablecoin and market structure bills), suggest that Congress is increasingly engaged in shaping the future of crypto.

The Path Forward: Bipartisan Action for Lasting Crypto Regulation

The message from Wiley Nickel is clear: for crypto regulation to be meaningful and stand the test of time, it must originate from Congress. Executive actions can be a starting point, but they are inherently temporary.

To ensure the crypto industry thrives in the US, fostering innovation while protecting consumers, a concerted, bipartisan effort in Congress is not just preferable—it’s absolutely essential. The coming years will be critical in determining whether this legislative pathway can deliver the lasting change the crypto world desperately needs.

The industry must actively engage with lawmakers, advocating for sensible and balanced regulations. Only through this collaborative approach can we hope to see a robust and future-proof regulatory framework emerge from Capitol Hill.